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CA Final Ind AS 27, 28 and 111 Separate Financial Statements, Associates and Joint Ventures — practice questions

Explore 57 free Ind AS 27, 28 and 111 Separate Financial Statements, Associates and Joint Ventures questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Ind AS 27, 28 and 111 Separate Financial Statements, Associates and Joint Ventures questions and exercises with answers

Showing questions 1–30 of 57.

Ind AS 111 classifies a joint arrangement as either:Read the answer and worked solution →Under Ind AS 28, the equity method initially records the investment in an associate or joint venture at:Read the answer and worked solution →Under Ind AS 28, length of difference between the reporting dates of an investor and its associate/JV must not exceed:Read the answer and worked solution →At what holding of voting power is significant influence presumed in an investee?Read the answer and worked solution →Under Ind AS 28, an entity holding under 20 per cent of the voting power is presumed to:Read the answer and worked solution →Significant influence is best described as the power to:Read the answer and worked solution →An entity over which the investor has significant influence is called a:Read the answer and worked solution →Which of these usually evidences significant influence?Read the answer and worked solution →Which is a listed indicator of significant influence?Read the answer and worked solution →An investor may lose significant influence when the associate:Read the answer and worked solution →Can significant influence be lost without any change in the investor's ownership percentage?Read the answer and worked solution →Does a majority holding by another investor always rule out significant influence?Read the answer and worked solution →When applying the 20 per cent test, voting power held through subsidiaries is:Read the answer and worked solution →Under the equity method, an investment is initially recognised at:Read the answer and worked solution →Under the equity method, the investor's share of investee profit goes to:Read the answer and worked solution →Under the equity method, distributions received from the investee:Read the answer and worked solution →A buys 30% of B for Rs 10,00,000. B earns Rs 4,00,000 and pays dividends of Rs 1,00,000. Carrying amount?Read the answer and worked solution →An investor buys 25% of an associate for Rs 8,00,000. The associate loses Rs 6,00,000. Carrying amount?Read the answer and worked solution →Share of an associate's losses equals the interest. The investor:Read the answer and worked solution →Losses beyond a nil interest are provided for only to the extent of:Read the answer and worked solution →Which item can form part of the net investment in an associate?Read the answer and worked solution →Carrying Rs 20,00,000; share of loss Rs 28,00,000. Now the carrying amount and unrecognised loss are:Read the answer and worked solution →Share of profit Rs 10,00,000; Rs 8,00,000 of earlier losses unrecognised. Profit recognised?Read the answer and worked solution →A group's share in an associate aggregates holdings of:Read the answer and worked solution →Sales of assets from an associate to the investor are called:Read the answer and worked solution →A 30% associate sells goods to the investor at Rs 60,000 profit, all unsold. Profit eliminated?Read the answer and worked solution →A downstream sale shows the asset's net realisable value has fallen. The investor recognises that loss:Read the answer and worked solution →Investor gets equity plus cash for a non-monetary asset. Gain on the cash part is:Read the answer and worked solution →Goodwill relating to an associate is:Read the answer and worked solution →A 30% stake costs Rs 90,00,000; share of net fair value is Rs 80,00,000. The Rs 10,00,000 is:Read the answer and worked solution →

Worked practice questions

Ind AS 111 classifies a joint arrangement as either:

  1. A subsidiary or an associate
  2. A joint operation or a joint venture
  3. An investment or a financial asset
  4. A jointly controlled entity or a jointly controlled operation under AS 27
Show answer and solution

Correct answer: B. A joint operation or a joint venture

**Ind AS 111 recognises only two types:** joint operation (rights to assets, obligations for liabilities) and joint venture (rights to net assets). The AS 27 'jointly controlled entity' bucket is from earlier Indian GAAP, not Ind AS 111.

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Under Ind AS 28, the equity method initially records the investment in an associate or joint venture at:

  1. Carrying value in the books of the investee
  2. Cost
  3. Fair value at the date of acquisition
  4. Lower of cost and net realisable value
Show answer and solution

Correct answer: B. Cost

Initial recognition is at COST. Subsequent measurement adjusts the carrying amount for the investor's share of post-acquisition changes in the investee's net assets (P&L, OCI, distributions).

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Under Ind AS 28, length of difference between the reporting dates of an investor and its associate/JV must not exceed:

  1. Three months
  2. Two months
  3. Six months
  4. One month
Show answer and solution

Correct answer: A. Three months

Ind AS 28 paragraph 33 caps the gap between reporting dates at three months. AS 23 has no such limit. This is a documented Ind AS 28 vs AS 23 difference.

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More Financialreporting topics

Ind AS 116 LeasesInd AS 36 Impairment of Assets and Ind AS 38 Intangible AssetsInd AS 24 Related Party Disclosures and Ind AS 108 Operating SegmentsInd AS 1 Presentation of Financial StatementsInd AS 12 Income TaxesInd AS 113 Fair Value MeasurementInd AS 109 Financial InstrumentsInd AS 23 Borrowing Costs and Ind AS 40 Investment Property